KUALA LUMPUR, July 15 — ECM Libra Capital has maintained a buy call on Tenaga Nasional Bhd (TNB) ahead of its third quarter results yesterday, which is expected to be weak.

The brokerage said investors should see this short-term price weakness as a good opportunity to accumulate shares trading at discount to market price-to-earning (P/E) multiple, ahead of TNB's expected recovery in the next financial year.

“Any share price weakness from the poor results will be a good buying opportunity as the effect of gas shortages is expected to be transitory with full recovery expected in FY12,” it said in a note today.

ECM Libra added that TNB’s gas shortage problem should be over by July once scheduled maintenance work by Petronas is completed by end-June, after which it will be “business as usual” as gas supply to the power sector will recover to the usual 1,150 mmscfd.

TNB is expected to report weak third quarter results for the 2011 financial year on 21 July as gas shortages during the quarter have forced the national power company to burn alternative fuels like coal, oil, distillate and import electricity from Power Seraya, Singapore.

The gas shortage coincided with seasonally strong demand in April and May, which will further add to TNB’s fuel costs as it burns more alternative fuel to meet consumers’ needs.

ECM has maintained a buy call on TNB with a target price of RM7.84, based on an unchanged P/E multiple of 15x.